Bybit and Franklin Templeton Unveil Off-Exchange Collateral Program for Institutional Clients

Bybit and Franklin Templeton have formed a strategic collaboration to expand access to tokenized investing. The partnership's first initiative is a new off-exchange collateral program that allows institutional clients to use fund shares as collateral for trading on Bybit, without moving the tokens themselves from an external custody setup. This means that investors can maintain their fund shares off-exchange while still accessing liquidity for trades in USDT or USDC-denominated credit lines on Bybit. The tokenized assets are issued through Franklin Templeton's Benji Technology Platform and will be stored in an external custody arrangement, with their value reflected on the Bybit trading environment. This allows investors to earn returns from fund shares while maintaining control over their investments. The partnership plans to expand its cooperation to wallet users as well, aiming to provide tokenized assets for investment products aligned with Franklin Templeton's operating strategies on the Mantle L2 network. Franklin Templeton has already launched a similar program for institutional clients using Binance, which also utilizes external custody arrangements through Ceffu.